Finance Minister Senator Muhammad Aurangzeb on Friday emphasized that a fully digitalised taxation system is imperative to eliminate leakage and enhance collection without hassle for taxpayers. Addressing the business community at the Faisalabad Chamber of Commerce and Industry (FCCI), he outlined the government's strategy for economic reform and tax administration.
Digitalisation and Tax Administration
The minister stated that the finance division is responsible for budget preparation, while the Federal Board of Revenue (FBR) would handle tax administration. He stressed the importance of the private sector in leading the economy. Aurangzeb noted that records of every individual are available with NADRA and FBR, which will be integrated to eliminate tax leakage. This integration aims to create a seamless system that reduces evasion and broadens the tax base.
Interest Rate Reduction and Economic Impact
On financing, Aurangzeb highlighted that the interest rate has been trimmed from 22% to 11.5%. He added, "It could be further brought down if the Iran conflict is resolved immediately." The minister indicated that more concessions would be given to exporters in the next budget, aiming to boost foreign exchange earnings.
Electricity Tariff and Subsidies
Quoting electricity tariff reforms, he said all cross subsidies have been eliminated, which would further bring down rates. Advance and super taxes have also been eliminated, providing relief to businesses and individuals. These measures are part of broader efforts to improve the ease of doing business and stimulate economic activity.
IT Sector and Construction Industry
The minister appreciated the IT sector's performance, noting exports have reached $4.5 billion. He encouraged the construction sector but clarified that the government will not allow the sale and purchase of files, referring to speculative property transactions. The focus remains on actual development and investment in the sector.
